LANKEM CEYLON PLC

Company No. PQ 128

INTERIM FINANCIAL STATEMENTS

For The Year Ended 31 st March 2011

LANKEM CEYLON PLC

Company No. PQ 128

INCOME STATEMENT - GROUP

Quarter
ended
31.03.2011
Rs.'000

Revenue
Cost of Sales

7,654,441
(6,444,716)

Gross Profit

1,209,725

Quarter
ended
31.03.2010
Rs.'000

Variance
%

Year
ended
31.03.2011
Rs.'000

Year
ended
31.03.2010
Rs.'000
Audited

Variance
%

2,712,449 +
(2,182,718) -

182
195

22,644,149
(18,510,577)

11,046,103 +
(8,786,326) -

105
111

529,731 +

128

4,133,572

2,259,777 +

83

+
-

67
50
115
30
267

219,277
(799,550)
(1,129,259)
(27,729)
(475,625)

285,813
(502,563)
(905,520)
(39,673)
(294,252)

+
-

23
59
25
30
62

Other Income
Distribution Costs
Administration Expenses
Other Expenses
Financing Cost

41,255
(275,547)
(291,023)
(27,729)
(71,537)

Profit before Tax

Taxation

585,144
(103,504)

276,874 +
(91,684) -

111
13

1,920,686
(183,757)

803,582 +
(269,630) +

139
32

481,640

185,190 +

160

1,736,929

533,952 +

225

202,204
279,436
481,640

66,144 +
119,046 +
185,190 +

206
135
160

907,634
829,295
1,736,929

342,678 +
191,274 +
533,952 +

165
334
225

8.43

3.15 +

167

37.82

16.32 +

132

Profit after Tax

Attributable to
Equity Holders of the Parent
Minority Interest

Earnings per Share (Rs.)

125,013
(183,195)
(135,520)
(39,673)
(19,482)

LANKEM CEYLON PLC

Company No. PQ 128

INCOME STATEMENT - COMPANY

Quarter
ended
31.03.2011
Rs.'000

Quarter
ended
31.03.2010
Rs.'000

Variance
%

Year
ended
31.03.2011
Rs.'000

Revenue
Cost of Sales

1,148,316
(991,508)

917,371 +
(804,858) -

25
23

Gross Profit

156,808

112,513 +

39

974,982

Other Income
Distribution Costs
Administration Expenses
Other Expenses
Net Finance Cost

19,032
(75,754)
(15,592)
(47,299)

+
+
-

23
50
36
100
362

60,596
(316,986)
(98,187)
(137,746)

Profit before Tax

Taxation

37,195
(15,551)

(16,281) +
(5,393) -

328
188

21,644

(21,674) +

0.90

(1.03) +

Profit after Tax

Earnings / (Loss) per Share (Rs.)

24,730
(150,261)
(11,429)
(9,880)
18,046

4,897,873
(3,922,891)

Year
ended
31.03.2010
Rs.'000
Audited

Variance
%

3,589,034 +
(2,927,664) -

36
34

661,370 +

47

105,788
(291,044)
(92,912)
(9,880)
(55,957)

+
-

43
9
6
100
146

482,659
(17,551)

317,365 +
(123,509) +

52
86

200

465,108

193,856 +

140

187

19.38

9.23 +

110

LANKEM CEYLON PLC

Company No. PQ 128

BALANCE SHEET
Group

ASSETS
Non - Current Assets
Property,Plant & Equipment
Investment Properties
Intangible Assets
Investments in Subsidiaries
Other Long-Term Investments
Retirement Benefit Obligations - Plan Assets
Deferred Tax Assets
Current Assets
Inventories
Trade and Other Receivables
Trade Receivables from Subsidiaries
Non-Trade Receivables from Related Parties
Income Tax Recoverable
Short-Term Investments
Bank & Cash Balances
Total Assets
EQUITY AND LIABILITIES
Equity Attributable to Equity Holders of the Parent
Stated Capital
Capital Reserves
Revenue Reserves
Minority Interest
Total Equity
Non - Current Liabilities
Interest Bearing Borrowings
Deferred Income - Capital Grant
Deferred Tax Liabilities
Retirement Benefit Obligations
Net Obligation to Lessor
Current Liabilities
Trade & Other Payables
Trade Payables to Subsidiaries
Non-Trade Payables to Related Parties
Interest Bearing Borrowings
Loan Payable to Related Parties
Income Tax Payables
Short-Term Borrowings and Obligations
Total Liabilities
Total Equity and Liabilities
Net Asset per Share (Rs.)

Company

As at
31.03.2011
Rs.'000

As at
31.03.2010
Rs.'000
Audited

As at
31.03.2011
Rs.'000

As at
31.03.2010
Rs.'000
Audited

8,701,864
50,752
377,602
29,877
104,101
5,878
9,270,074

7,672,041
55,783
357,078
53,240
104,101
5,873
8,248,116

513,493
1,515,384
186,758
66,083
2,281,718

480,994
1,370,959
186,758
66,083
2,104,794

2,513,862
3,341,142
242,395
272,418
60,714
1,424,685
7,855,216
17,125,290

1,681,997
2,409,940
137,992
297,561
12,401
496,178
5,036,069
13,284,185

688,907
557,749
303,122
735,279
144,604
59,415
370,245
2,859,321
5,141,039

491,665
533,611
326,830
305,044
120,278
12,401
87,748
1,877,577
3,982,371

536,218
452,412
1,957,098
2,945,728
2,981,577
5,927,305

281,218
376,164
1,090,108
1,747,490
1,882,100
3,629,590

536,218
95,710
1,364,997
1,996,925
1,996,925

281,218
95,710
971,139
1,348,067
1,348,067

2,421,398
563,184
169,141
1,622,723
404,170
5,180,616

2,148,289
507,910
194,645
1,405,348
409,741
4,665,933

560,502
1,274
12,923
143,702
718,401

274,767
3,458
37,113
110,091
425,429

2,579,630
242,309
527,838
26,000
123,518
2,518,074
6,017,369
11,197,985
17,125,290

2,683,663
197,636
437,077
84,000
118,314
1,467,972
4,988,662
9,654,595
13,284,185

801,615
151,622
279,880
129,460
26,000
3,223
1,033,913
2,425,713
3,144,114
5,141,039

950,696
170,071
79,033
118,207
85,000
40,016
765,852
2,208,875
2,634,304
3,982,371

122.74

83.21

83.21

64.19

The Board of Directors is responsible for preparation and presentation of these financial statements.
For and on behalf of the Board ;

.
Anushman Rajaratnam
Director
Colombo
30th May 2011

.
K.P. David
Director

LANKEM CEYLON PLC

Company No. PQ 128

STATEMENT OF CHANGES IN EQUITY

Group

Equity Attributable to Equity Holders of the Parent

Stated
Capital
Rs. '000

Balance as at 01.04.2010

281,218

Issue of Shares by the Company

255,000

Revaluation
Reserve
Rs. '000

345,334

Other Capital
Reserve
Rs. '000

Capital Redemption
Reserve fund
Rs. '000

General
Reserve
Rs. '000

305,952

Accumulated
Profit/(Loss)
Rs. '000

22,497

8,333

784,156
-

Total

Minority
Interest

Rs. '000

Rs. '000

1,747,490
255,000

1,882,100
-

Total
Equity

3,629,590
255,000

Issue of Shares by Subsidiaries

156,495

156,495

Movements due to Changes in Equity

30,606

30,606

59,344

89,950

Revaluation Surplus

76,248

76,248

100,908

177,156

Profit after Tax

907,634

907,634

829,295

1,736,929

Dividend paid - 2010/2011

(71,250)

(71,250)

(71,250)

Subsidiary Dividend to Minority

Shareholders

(46,565)

(46,565)

Balance as at 31.03.2011

536,218

421,582

22,497

8,333

305,952

1,651,146

2,945,728

2,981,577

5,927,305

Balance as at 01.04.2009

281,218

228,568

35,919

8,333

318,321

304,403

1,176,762

1,077,484

2,254,246

120,155

120,155

229,926

350,081

129,111

129,111

Revaluation Surplus

Issue of Shares by Subsidiaries

Movements due to Changes in Equity

(3,148)

(11,459)

(11,298)

141,066

115,161

2,620

117,781

Adjustments on Acquisitions/Disposals

(241)

(1,963)

(1,071)

38,009

34,734

259,519

294,253

Profit after Tax

342,678

342,678

191,274

533,952

Dividend paid - 2009/2010

(42,000)

(42,000)

22,497

8,333

Balance as at 31.03.2010

281,218

345,334

305,952

784,156

Company
Stated
Capital
Rs. '000

Revaluation
Reserve
Rs. '000

Capital Redemption
Reserve fund
Rs. '000

General
Reserve
Rs. '000

Accumulated
Profit/(Loss)
Rs. '000

Total
Rs. '000

Balance as at 01.04.2010
Issue of Ordinary Shares
Dividend Paid
Profit after Tax
Balance as at 31.03.2011

281,218
255,000
536,218

87,377
87,377

8,333
8,333

300,000
300,000

671,139
(71,250)
465,108
1,064,997

1,348,067
255,000
(71,250)
465,108
1,996,925

Balance as at 01.04.2009

281,218

45,145

8,333

300,000

519,283

1,153,979

Surplus on Valuation during the year

Dividend Paid 2009/10
Profit after Tax
Balance as at 31.03.2010

281,218

42,232
87,377

8,333

300,000

(42,000)
193,856
671,139

42,232
(42,000)
193,856
1,348,067

1,747,490

(7,834)
1,882,100

(49,834)
3,629,590

LANKEM CEYLON PLC

Company No. PQ 128

CASH FLOW STATEMENT

Group
For the Year ended 31

st

March

Cash Flows from Operating Activities

Profit before Tax
Adjustments for :
Depreciation
(Profit) / Loss on Disposal of Property Plant & Equipment
(Profit) / Loss on Disposal of Investments
Creditors no longer Payable Written back
(Reversal)/Provision for Amounts Receivable from Related Companies
Dividend Income
Interest Expenses
Interest Income
Provision / (Reversal of) Bad & Doubtful Debts
Provision for Retirement Gratuity
Change in Fair Value in Short Term Investments
Provision for / (Reversal of) impairment in Value of Investments
Reversal of Impairment of Capital Work-In-Progress
Provision for Obsolete Stocks
Amortisation of Deferred Income
(Gain) / Loss on Translation of Foreign Currency
Profit before Working Capital Changes
(Increase) / Decrease in Inventories
(Increase) / Decrease in Trade and Other Receivable
(Increase) / Decrease in Amounts due from Related Parties
Increase / (Decrease) in Trade and Other Payables
Increase / (Decrease) in Amounts due to Related Parties
Cash generated from Operations
Gratuity Paid
Taxes Paid
Interest Paid
Net Cash generated from/(used in) Operating Activities

2011
Rs.'000

Company
2010
Rs.'000
Audited

2011
Rs.'000

2010
Rs.'000
Audited

1,920,686

803,582

482,659

317,365

363,059
(14,987)
(15,806)
(6,294)
534,254
(6,651)
14,932
323,761
9,189
(13,062)
3,109,081
(841,054)
(946,134)
(104,403)
(104,033)
44,673
1,158,130
(106,386)
(178,919)
(541,061)
331,764

284,586
(5,033)
(83,667)
(15,179)
(25)
(318)
325,593
(11,320)
(4,526)
406,954
(1,112)
(2,737)
(12,940)
16,087
(17,489)
945
1,683,401
(211,741)
(304,966)
1,228
321,608
12,977
1,502,507
(82,881)
(389,690)
(299,478)
730,458

53,078
(16,052)

43,026
(68,559)

9,189
(2,184)
677,285
(206,431)
(62,014)
(406,527)
(94,708)
182,398
90,003
(112,298)
(153,945)
(176,240)

13,345
(2,184)
376,453
31,005
(51,820)
(80,838)
12,790
18,067
305,657
(131,136)
(109,143)
65,378

Cash Flows from Investing Activities

Acquisition of Property, Plant & Equipment
Investment in Field Development
Proceeds from Disposal of Property, Plant & Equipment
Investments in Subsidiaries
Proceeds from Disposal of Subsidiaries
(Acquisition) / Disposal of Other Long Term Investments
(Acquisition) / Disposal of Short-Term Investments
Interest Received
Dividend Received
Net Payment to Minority Share Holders
Investments in Fixed Deposits
Net Cash generated from/(used in) Investing Activities

(638,961)
(200,000)
54,633
(46,020)
23,363
(48,313)
9,749
6,294
(104,429)
(943,684)

(1,229,893)
371,471
(954,998)
192,479
(113,320)
57,301
11,320
318
(7,834)
(1,673,156)

(85,577)
(144,425)
39,584
(70,546)
40,538
(220,426)

(124,716)
(612,760)
180,742
(112,392)
57,423
46,532
13,491
(551,680)

Cash Flows from Financing Activities

Proceeds from Ordinary Shares Issued by the Company
Proceeds from Issue of Ordinary Shares by Subsidiaries
Receipts of Loans and Leases
Repayment of Loans and Leases
Capital Grants Received
Issue of Debentures
Redemption of Debentures
Payment to Lessor on Leasehold Rights
Dividend Paid
Receipts / Settlement of Long Term Loans from Related Companies
Net Cash generated from/(used in) Financing Activities

255,000
232,483
856,198
(723,167)
68,336
150,000
(112,500)
(60,210)
(117,815)
(58,000)
490,325

1,008,851
(452,517)
101,209
100,000
(9,000)
(29,232)
(42,000)
27,000
704,311

255,000
400,000
(263,648)
150,000
(71,250)
(59,000)
411,102

300,000
(100,186)
(42,000)
28,000
185,814

(121,595)
(971,794)
(1,093,389)

(238,387)
(733,407)
(971,794)

14,436
(678,104)
(663,668)

(300,488)
(377,616)
(678,104)

Net Increase in Cash & Cash Equivalents

Cash & Cash Equivalents at the beginning of the year
Cash & Cash Equivalents at the end of the period

(40,539)
153,945
13,550
23,639
-

9,880
(13,491)
123,010
(46,532)
(5,841)
15,988
(1,154)
(8,400)

LANKEM CEYLON PLC

Company No. PQ 128

SEGMENT INFORMATION
Information based on primary segments (Business Segments)
Segment Revenue
Segment Revenue
For the Year ended 31

st

March

Chemicals
Consumer
Hardware
Construction
Hotels
Plantations
Agriculture

2011
Rs.'000

2010
Rs.'000

Inter Segment
2011
Rs.'000

2010
Rs.'000

Group Net Revenue

2011
Rs.'000

2010
Rs.'000

4,357,588
6,625,551
6,297,642
96,931
595,102
7,010,576
29,330

3,126,744
432,549
2,286,168
95,560
406,066
6,433,654
16,902

(476,049)
(343,844)
(1,355,964)
(192,714)
-

(378,350)
(193,612)
(982,953)
(196,625)
-

3,881,539
6,281,707
4,941,678
96,931
595,102
6,817,862
29,330

2,748,394
238,937
1,303,215
95,560
406,066
6,237,029
16,902

25,012,720

12,797,643

(2,368,571)

(1,751,540)

22,644,149

11,046,103

Segment Results
Segment Results
For the Year ended 31 st March

Chemicals
Consumer
Hardware
Construction
Hotels
Plantations
Agriculture

Finance Cost

Profit before Tax

Tax Expense

Profit/(Loss) after Tax

2011
Rs.'000

2010
Rs.'000

2011
Rs.'000

2010
Rs.'000

2011
Rs.'000

2010
Rs.'000

2011
Rs.'000

2010
Rs.'000

2011
Rs.'000

2010
Rs.'000

529,178
293,916
322,378
(19,698)
61,052
1,212,859
(3,374)

554,144
(64,775)
41,020
3,317
814
577,312
(13,998)

(102,634)
(49,046)
(89,544)
(3,735)
(19,148)
(211,441)
(77)

(109,524)
(7,213)
(18,132)
(973)
(25,954)
(132,387)
(69)

426,544
244,870
232,835
(23,433)
41,904
1,001,418
(3,452)

444,621
(71,988)
22,888
2,344
(25,140)
444,925
(14,068)

(38,220)
(50,959)
(43,985)
17
(5,045)
(45,565)
-

(139,036)
(6,917)
(2,905)
929
(174)
(121,527)
-

388,324
193,911
188,850
(23,416)
36,859
955,853
(3,452)

305,585
(78,905)
19,983
3,273
(25,314)
323,398
(14,068)

(475,625)

(294,252)

1,920,686

803,582

(183,757)

(269,630)

2,396,311

1,097,834

1,736,929

533,952

LANKEM CEYLON PLC

Company No. PQ 128

Notes to the Financial Statements

1. The Interim Financial Statements have been prepared in accordance with the accounting policies set out in the audited financial
statements for the year ended 31st March 2010 and also in compliance with Sri Lanka Accounting Standard 35 - Interim Financial
Reporting.
2. The presentation and classification of the financial statements of the previous period, have been amended, where relevant, for better
presentation and to be comparable with those of the current period.
3. No circumstances other than those disclosed below, have arisen since the Balance Sheet date that require adjustments to or
disclosure in the financial statements.
Lankem Developments PLC has made a Rights Issue of 103,500,000 Ordinary Shares at a price of Rs.25/- per share to the holders
of the issued Ordinary Shares of the Company as at the end of trading on the 21st of April 2011 in the proportion of Fifteen (15)
new Ordinary Shares for every One (1) Ordinary Share held by them in the Capital of the Company. The purpose of the issue was to
finance the acquisition of the equity stake in Agarapatana Plantations Limited and for further equity investments in Plantation
Companies, Leisure Industry and Hydro Power Plants.
4. Results of the subsidiary, C.W. Mackie PLC for the 15 months to 31st March 2011 are included in the consolidated
results of the parent for 12 months to 31st March 2011. Since the acqusition of C.W. Mackie PLC took place in
January 2010, no post acqusition profits attributable to C.W. Mackie PLC were included in the results of the parent
for the 12 months to 31st March, 2010.
5. The Board of Directors of Beruwala Resorts Ltd. have resolved on 22nd March 2011 that subject to the determination of the
shareholders by a Special Resolution to be passed at an Extraordinary General Meeting to be held on 20 th June 2011, that the
Company's Stated Capital be reduced from Rs. 666,607,580/- to Rs. 340,000,000/- without effecting any change to the number of
issued and fully paid ordinary shares.
The reduction is to be effected by setting off the brought forward losses of the Company against its Stated Capital to the extent of
Rs. 326,607,580/- and by writing off a similar amount from the Companys carry forward losses as at the financial year ended 31 st
March 2010 of Rs. 329,464,868/- which carry forward losses would consequent thereto be reduced to Rs. 2,857,288/-.
6. There has been no significant change in the nature of the contingent liabilities which were disclosed in the audited financial
statements for the year ended 31st March 2010.
7. The figures in the Financial Statements are provisional and subject to audit.
8. Share Information
As at 31st March
Stated Capital (Rs.'000)
Number of Ordinary Shares (Voting) Issued

2011

2010

536,218

281,218

24,000,000

21,000,000

9. Market Price recorded during the quarter

31.03.2011

Highest
Lowest
Last traded price (Volume Weighted Average)

Rs.

Rs.

500.00
247.00
401.50

73.00
41.00
65.00

10. Directors direct and indirect shareholdings as at 31.03.2011

Name of Director
Mr. A. Rajaratnam
Mr. S. D. R. Arudpragasam
Mr. Anushman Rajaratnam
Mr. K. P.David
Mr. A. R. Peiris
Mr. R. T. Weerasinghe

31.03.2010

No. of Shares
12,198
5,132
5,403
8,150
5,435
3,500

LANKEM CEYLON PLC

Company No. PQ 128

Notes to the Financial Statements

st
11. The percentage of shares held by the public as at 31 March 2011 was 17.85%

12. The twenty major Shareholders as at 31.03.2011 were as follows;

Name of Shareholders
E. B. Creasy & Company PLC
The Colombo Fort Land & Building Co. PLC
Seylan Bank PLC/The Colombo Fort Land & Building Co. PLC
Colombo Fort Investments PLC
Darley Butler & Company Limited
Associated Electrical Corporation Ltd
Colombo Investment Trust PLC
Pan Asia Banking Corporation PLC/Darley Butler & Company Limited
Mr. Dueleep Fairlie George Dalpethado
Mr. Mushtaq Mohamed Fuad
J. B. Cocoshell (Pvt) Ltd
Colonial Motors PLC
Waldock Mackenzie Ltd/Hi-Line Trading (Pvt) Ltd
Mr. Mariapillai Radhakrishnan
Mr. Anthony Isidore De Silva and Mr. Francis Xavier Ranjith Pereira
Dr. Thirugnanasambandar Senthilverl
Pan Asia Banking Corporation PLC/Mr. H. N. De Silva
Mr. Duraisamy Ganeshamoorthy and Mr. Periyasaami Pillai Anandarajah
First Capital Markets Limited/Ventura Crystal (Pvt) Limited
Pan Asia Banking Corporation PLC/Mr. I. P. Galhenage

No. of Shares
10,974,635
4,941,900
2,500,000
419,857
366,616
186,700
170,219
169,998
159,406
116,900
105,299
100,457
87,485
68,800
55,047
52,014
51,000
50,000
50,000
48,612
20,674,945

%
45.73
20.59
10.42
1.75
1.53
0.78
0.71
0.71
0.66
0.49
0.44
0.42
0.36
0.29
0.23
0.22
0.21
0.21
0.21
0.20
86.16